02:08 PM EDT, 06/04/2024 (MT Newswires) -- The CRTC will require online streaming services that make $25 million or more in annual contributions revenues and that are not affiliated with a Canadian broadcaster to contribute 5% of those revenues to certain funds. This is expected to take effect in the 2024-2025 broadcast year, which starts on Sept. 1, and will provide $200 million per year in new funding, writes National Bank.

Analyst Adam Shine points out that Canadian broadcasters like Corus contribute 30% of prior year's regulated revenues to Canadian content spending.

"It's disappointing that the CRTC only went to a 5% rate for foreign streamers and that it didn't reduce the obligations of Canadian companies. This clearly represents inconsistencies and unfairness in how obligations are assessed in terms of giving back into the Canadian film and TV production sector after extracting advertising and subscriber revenues in Canada," he adds.

Corus is rated Underperform, with a $0.40 target.

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